Tax deadline extended for Child Care Subsidy families

Families receiving the Child Care Subsidy (CCS) will now have until 31 March 2021 to submit their 2018-19 tax return for CCS purposes. 

Families will still be required to submit tax documents in accordance with the usual timeframes. 

Minister for Education Dan Tehan said the new deadline would ensure that families who had not submitted their 2018-19 tax return could continue to access subsidised care from 13 July 2020. 

“Our Government has given families an extension to continue receiving the CCS while they submit their 2018-19 tax return paperwork by 31 March 2021,” Mr Tehan said. 

“From 13 July 2020, the CCS will resume operation and eligible families will be expected to make a contribution towards the cost of child care. This one-off extension means that families will continue to have access to the CCS and not be required to pay full fees, ensuring that parents can continue to access affordable care. 

“I encourage all families that have not submitted their 2018-19 tax return paperwork to do so as soon as possible. I also remind parents to update their details with Services Australia before
 13 July 2020, especially those with reduced incomes, to ensure they receive the correct level of subsidy they are entitled to. 

“Our Government’s child care package is income tested and is designed to provide the most support to families who earn the least.” 

Under the CCS legislation, if a family does not lodge their 2018-19 tax return by 31 March 2021, or advise Services Australia (Centrelink) that they are not required to lodge, they will lose their entitlement to the CCS and will be required to pay full child care fees. Once families lodge their 2018-19 tax return, entitlement to the CCS can recommence. 

Families are encouraged to lodge their 2018-19 tax return as soon as possible, noting the extension is for CCS purposes only, and delaying lodgement of the return could affect other benefits, such as Family Tax Benefit. Families should check the ATO website to understand the consequences for non-lodgement of tax returns by the required due date.